New drilling technologies borrowed from the oil and gas sector could dramatically expand geothermal electricity production, allowing power plants to operate far beyond the limited locations where conventional geothermal resources exist today.
According to the U.S. Energy Information Administration (EIA), the first large-scale commercial enhanced geothermal system (EGS) power plant in the United States is currently under construction and scheduled to begin operating in June 2026.
Geothermal power plants generate electricity by tapping underground heat from reservoirs of hot water or steam. These resources typically occur in geologically active regions near tectonic plate boundaries or volcanic areas, which is why most conventional geothermal generation in the United States is located in western states such as California and Nevada.
The United States currently has about 2.7 gigawatts (GW) of geothermal generating capacity, accounting for roughly 0.2 per cent of total U.S. summer electricity capacity, according to the EIA.
Enhanced geothermal systems aim to expand that potential by creating artificial reservoirs deep underground where naturally occurring geothermal resources do not exist.
Unlike conventional geothermal plants that rely on naturally permeable rock formations, EGS uses advanced drilling techniques—including horizontal drilling and hydraulic fracturing—similar to technologies developed for oil and natural gas production. These techniques allow engineers to create underground reservoirs where water can circulate through hot rock, producing steam that drives electricity-generating turbines.
Because EGS can theoretically be deployed in many more locations, it could significantly expand geothermal energy production.
The U.S. Geological Survey estimates that 135 GW of potential geothermal electricity generation could be available from EGS in the Great Basin region alone. Other studies suggest that up to 150 GW of cost-effective geothermal capacity could eventually be developed across the United States, depending on technological progress and electricity market conditions.
A 2023 study by the National Laboratory of the Rockies estimated that 90 GW of EGS capacity could be economically built in the United States by 2050.
Several projects are already moving forward. Fervo Energy’s Cape Generating Station in Utah will be the first large-scale commercial EGS power plant in the country. The facility is expected to have 28 megawatts (MW) of net summer generating capacity, with a maximum capacity of 53 MW.
Two additional EGS units of the same size are expected to begin operating at the site in early 2027, and the company has signed power purchase agreements with Southern California Edison for up to 320 MW of electricity as it expands the project.
Other developers are also testing advanced geothermal technologies. Rodatherm Energy Corp. is piloting a closed-loop geothermal system designed for hot sedimentary rock formations common in the western United States and along the Gulf Coast.
Large electricity users are beginning to support geothermal development as well. Technology company Meta recently signed an agreement with geothermal developer SAGE to supply up to 150 MW of geothermal electricity to help power its data centre operations.
Despite the promise of EGS, several challenges remain. Geothermal projects require expensive deep drilling and careful management of underground reservoirs. Developers must also mitigate the risk of induced seismicity, or small human-caused earthquakes that can occur during reservoir creation.
Governments and industry groups are investing in research to reduce those risks and lower drilling costs. One major research initiative is the Utah Frontier Observatory for Research in Geothermal Energy (FORGE), a U.S. Department of Energy field laboratory where scientists and engineers are testing techniques for creating and managing enhanced geothermal reservoirs.
Canada is also playing a role in advancing next-generation geothermal technology.
Calgary-based Eavor Technologies is developing a closed-loop geothermal system that circulates fluid through underground wells without requiring naturally occurring reservoirs or hydraulic fracturing. The technology creates a sealed underground heat exchanger designed to deliver constant geothermal energy.
The company recently completed a major project in Geretsried, Germany, where it is building what it describes as the world’s first commercial-scale closed-loop geothermal power plant. The facility is expected to produce both electricity and district heating using Eavor’s advanced geothermal system.
Advances such as enhanced geothermal systems and closed-loop technologies could significantly expand the role of geothermal energy in global electricity markets.
Because geothermal plants produce continuous electricity and are not dependent on weather conditions like wind or solar power, some analysts say advanced geothermal technologies could become an important source of reliable, carbon-free power as countries expand clean energy systems.
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